HM Revenue & Customs (HMRC) is responsible for the collection and publication of data on imports and exports of goods to and from the UK. HMRC releases this information monthly, as a National Statistic called the Overseas Trade in Goods Statistics (OTS), which is available via their dedicated website (www.uktradeinfo.com). From this website it is also possible to access other published statistics and information related to international trade in goods.

Information about the number of businesses who exported goods to the EU in 2021 and 2022 was obtained from customs declarations and is publicly available in the Customs Importer and Exporter Population Report 2022 (see Table 2 ‘Partner by Direction’). Methodology notes about this data can be found here.

Prior to 2021, this information was obtained from the Intrastat survey and is publicly available in the Regional Trade Statistics Accompanying Tables for Q2 2021 (see Tab “CE”, Table 3: count of exporters to EU, 2018 to 2020). The applicable methodology is detailed in the published ‘Notes’ tab.

The Government’s ambition is to connect at least 85 per cent of UK premises to gigabit-capable broadband by 2025, and for nationwide connectivity (at least 99 per cent) to be realised by 2030. Project Gigabit is the government’s £5 billion programme that will ensure the whole of the UK benefits from gigabit connectivity by providing subsidy to deliver gigabit-capable connectivity to uncommercial premises, which are typically in rural or remote locations. Over 75 per cent of UK premises can now access gigabit-capable broadband, a huge leap forward from July 2019, when coverage was just 8 per cent.

Regarding the tax treatment of home broadband, under long-standing rules, payments from employers reimbursing employees for reasonable additional costs they incur while having to work from home are exempt from taxation. This includes the cost of providing broadband to an employee where a connection was not already available, the employee requires broadband to work from home, and the broadband is used mainly for business purposes.

HM Revenue and Customs (HMRC) does not hold information on the revenue received from taxes on businesses that provide their employees with business broadband for their residential properties.

HM Revenue and Customs (HMRC) does not hold information on the revenue received from taxes on businesses that provide their employees with business broadband for their residential properties.

The information requested is not available. HMRC does not hold information on VAT revenue from specific products or services because businesses are not required to provide figures at a product level on their VAT returns, as this would impose an excessive administrative burden on them.

The recent revaluation of business rates, which came into effect on 1 April 2023, ensures rateable values, and therefore bills, more accurately reflect current market values. The Government is legislating for more frequent revaluations, from every 5 years to every 3 years, a key stakeholder ask which will permanently make the system fairer and more responsive for all ratepayers.

The Government has also announced a package worth £13.6 billion over the next five years to support businesses with the revaluation, including:

• a freeze to the business rates multiplier for 2023-2024, a tax cut worth £9.3 billion over the next 5 years, meaning all bills are 6 per cent lower than without the freeze;
• an increased 75 per cent relief for retail, hospitality and leisure properties, up to a cash cap of £110,000 per business for 2023-24. This is a tax cut worth over £2 billion for around 230,000 RHL businesses, to support the high street and protect small shops;
• an Exchequer funded Transitional Relief scheme worth £1.6 billion to protect an estimated 700,000 ratepayers facing bill increases due to increases in rateable value;
• £500 million of support over the next three years through a new Supporting Small Business scheme. This will cap bill increases to £50 per month for businesses losing some or all of their Small Business or Rural Rate Relief due to the revaluation.

Regarding small businesses, the Government has continued its generous Small Business Rate Relief scheme which means over a third of properties (720,000) pay no business rates at all, with an additional 76,000 in the taper benefitting from reduced bills.

Businesses in Newport West, as well as those across Wales and the UK, stand to gain significantly from the numerous business support measures announced at Spring Budget.

In particular, full expensing for investment in qualifying plant and machinery investment, until March 2026, amounts to a £27 billion tax cut for companies. Approximately 220,000 Welsh SMEs could also benefit from the government's plans to simplify the tax system. This is on top of the additional £180 million in Welsh Government funding through the Barnett formula, which can be used to support businesses.

The Government is committed to making the UK the best place to do business in the world and Newport West’s businesses stand to benefit from these fiscal steps.

The latest estimates of the cost of tax relief on Inheritance Tax relating to Agricultural Property Relief and Business Property Relief for 2017/2018 to 2022/2023 can be found in HMRC’s Non-structural tax reliefs publication available on the GOV.UK Website here: https://www.gov.uk/government/statistics/main-tax-expenditures-and-structural-reliefs.

HMRC has worked closely with software providers so that businesses will be able to choose a product that suits both their budget and their needs. This includes some products which have been deployed specifically to support different types of sectors.

There are free software products suitable for smaller, simpler businesses and subscription based Making Tax Digital (MTD) compatible software available. Costs will differ from business to business, and are influenced by factors including the size and complexity of the business, degree of digital capability, and the cost and functionality of software solution employed.

Assessments of the impact of the Budget are the responsibility of the independent Office for Budget Responsibility (OBR). Further details can be found in the OBR’s latest Economic and Fiscal Outlook published in March 2023: https://obr.uk/efo/economic-and-fiscal-outlook-march-2023/

HMRC publishes Tax Information and Impact Notes (TIINs) alongside tax legislation that present impact assessments of tax changes. TIINs give a clear explanation of the policy objective together with details of the tax impact on the economy. Economic impact assessments in TIINs are consistent with OBR forecasts: Tax information and impact notes - GOV.UK (www.gov.uk)

The Chancellor of the Exchequer has regular discussions with the Secretary of State for Business and Trade on a range of issues, including on incentives for businesses.

The previous VAT relief for tourism and hospitality cost over £8 billion. Reintroducing it would come at a significant further cost, reducing the money available to help fund key spending priorities, including important public services, such as the NHS, education and defence.

The Government has been clear that this was a temporary measure designed to support the cash flow and viability of sectors that have been severely affected by COVID-19.

At Autumn Statement 2022, the Government announced an increased 75 per cent relief for retail, hospitality and leisure properties in England, up to a cash cap of £110,000 per business for 2023-24. This is a tax cut worth over £2 billion for around 230,000 businesses, to support the high street and protect small shops.

Business rates relief is a devolved policy area and the Welsh Government is responsible for business rates policy in Wales. Barnett consequential funding for any reliefs will be provided to the Devolved Administrations.

While there are no plans to reduce the rate of VAT paid by hospitality businesses, the Government keeps all taxes under review.

The takings from gaming machines that are subject to Machine Games Duty are exempt from VAT. This means that businesses do not have to charge any VAT on the machine takings but, in line with the normal VAT rules, they cannot reclaim VAT on related costs.

HMRC is responsible for enforcing trade sanctions and investigating potential breaches of those controls.

We use a range of enforcement options such as education, warning letters, issuing compound settlements, seizures, disruptions and in the most serious of cases, referral to the Crown Prosecution Service for consideration for prosecution.

We undertake a preliminary assessment into all credible intelligence/allegations of trade sanctions offences and work with other government departments and international partners to identify high-risk movements.

Any UK person or company that is in breach of trade sanctions potentially faces a heavy fine or imprisonment.

HMRC is responsible for enforcing trade sanctions and investigating potential breaches of those controls.

We use a range of enforcement options such as education, warning letters, issuing compound settlements, seizures, disruptions and in the most serious of cases, referral to the Crown Prosecution Service for consideration for prosecution.

We undertake a preliminary assessment into all credible intelligence/allegations of trade sanctions offences and work with other government departments and international partners to identify high-risk movements.

Any UK person or company that is in breach of trade sanctions potentially faces a heavy fine or imprisonment.

With respect to customs, HM Revenue & Customs (HMRC) has employed consultants to deliver the protocol and advise on trade between Great Britain (GB) and Northern Ireland (NI). Furthermore, the Government has carried out an extensive programme of business engagement in relation to the movement of goods between GB and NI.

The Government is determined that everyone who is entitled to the National Minimum Wage (NMW) receives it.

HMRC continues to crack down on employers who ignore the law, ensuring that workers receive the wages they are entitled to.

A majority of NMW cases are subject to civil (non-criminal) sanctions, which include penalties of up to 200 per cent of the arrears, and public naming.

Prosecutions are reserved for the most serious offences. They can cause delays in recovering arrears for workers and do not necessarily guarantee payment. The data held by HMRC does not provide further breakdown as to the legal position of the individual who has been convicted of a criminal offence under section 31 of the National Minimum Wage Act 1998.

Full details of criminal prosecutions from 2007/2008 to 2020/2021 are provided as supplementary data (Table 13) to the annual report “National Living Wage and National Minimum Wage: Government evidence on enforcement and compliance, 2021”, published in May 2022. https://www.gov.uk/government/publications/national-living-wage-and-national-minimum-wage-government-evidence-on-enforcement-and-compliance-2021.

As part of the ongoing R&D tax reliefs review, the Government is reforming the R&D tax reliefs to ensure taxpayer’s money is spent as effectively as possible, to improve the competitiveness of the RDEC scheme, and is a step towards a simplified, single RDEC-like scheme for all.

The Treasury has estimated the changes will also help to support fiscal sustainability by raising revenue and reducing fraud and error, without materially changing the levels of R&D expenditure over the forecast period. The OBR certified the package of measures at the Autumn Statement 2022 had no net material impact on the capital stock forecast.

There are currently no plans to publish a summary of the engagement following the Spring Statement. Any changes to tax policy would be a matter for future Budgets and it would not be appropriate to comment on tax measures at this stage of the policy development cycle.